Tullow Oil Plc · LSE:TLW
Tullow Oil — FY2022 Earnings Presentation
21 slides from Tullow Oil's earnings presentation, Mar 8, 2023
Slide 1: Tullow Oil plc 2022 Full Year Results
Tullow Oil plc Tullow Oil plc | 2022 Full Year Results 8 March 2023
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reasonable in light of the informa
Slide 3: Building on a strong performance in 2022
Building on a strong performance in 2022 Financial review Operations review Strategy Presenters → Material revenue growth → Industry leading safety → Production growth in performance 2023 driven by Jubilee → Increasing oil price upside South East as hedges roll off → Positive impact on host countrie
Slide 4: Financial Review
FINANCIAL REVIEW Tullow Oil plc | 2022 Full Year Results
Slide 5: Growing financial strength in 2022
Growing financial strength in 2022 2023 guidance Financial performance 2021 2022 Production (kboepd) 59.2 61.1 Realised price after hedging ($/bbl) 63.3 88.0 Production 58-64 kboepd Revenue ($m) 1,285 1,783 Gross profit ($m) 647 1,086 Profit / (loss) after tax ($m) Capital investment ($m) (81) 263 4
Slide 6: Material free cash flow generation in second half of 2023
Material free cash flow generation in second half of 2023 Reduction in capex and decom spend as production increases Increasing exposure to oil price upside 160 69 Production Oil hedge portfolio (kbopd) 140 67 Capex 120 65 c. 20% in-year production growth 100 Upside 63 exposure Upside 80 c.35% expos
Slide 7: Maintaining low costs despite inflationary pressures
Maintaining low costs despite inflationary pressures Gross asset operating costs ($m) Net G&A costs ($m) 450Jubilee1 450 TEN 400 400 406 350 350 112 300 300 304 87 250 250 240 237 c. 240 200 200 64 150 150 177 51 148 150 c.145 c.45 100 100 134 50 50 - - 2019 2020 2021 2022 2023 2019 2020 2021 2022 2
Slide 8: Long term plan underpinned by material 2P reserves base
Long term plan underpinned by material 2P reserves base Sources and uses of cash 2023-25 ($bn) 4 $100/bbl $100/bbl 3 $80/bbl $80/bbl Further upside potential from 2 contingent payments in 1 Uganda, Gabon and Equatorial Guinea 0 Operating cash flow Decommissioning Finance costs Capex Free cash flow U
Slide 9: Operations Review
OPERATIONS REVIEW Tullow Oil plc | 2022 Full Year Results
Slide 10: Leveraging our unique position to build a better future
Leveraging our unique position to build a better future Material contribution to economic growth and tangible social benefits in our host nations Progress on decarbonisation in 2022 Shared Prosperity $15 million invested on decarbonisation initiatives as part of a $45 million multi-year programme 6,
Slide 11: Material reserves and resources underpinning growth potential
Material reserves and resources underpinning growth potential Reserves at 31 December 2022 Resources at 31 December 2022 Net Group production (kboepd) Côte d'Ivoire, 7 Guidance 61.1 58-64 Guyana, 58.2 CdI, 1 CdI, 1.8 55 Jubilee, EG, 1.1 Gabon, 32 CdI, 1.5 138 Gabon, 13 Gabon, 14.9 Gabon, 14.6 Net 2P
Slide 12: Commitment to health and safety
Commitment to health and safety Health and safety Top quartile safety performance Lost time injury rate (LTIR) IOGP LTIR Total recordable injury rate (TRIR) IOGP TRIR 1.27 Safe operations are at the forefront of our daily work and decision-making 0.43 0.32 0.21 0.00 0.00 Continuous reinforcement of
Slide 13: Relentless focus on operational excellence
Relentless focus on operational excellence Jubilee FPSO uptime evolution Immediate impact of O&M Transformation 98% 95% 99% c. 20% reduction in maintenance and 89% inspection backlog 86% Transition to operatorship in July 2022 c. 50% reduction in number of contracts and increase local content 50% 20
Slide 14: Targeting Jubilee production in excess of 100 kbopd in 2023
Targeting Jubilee production in excess of 100 kbopd in 2023 2023 drill schedule focussed on Jubilee and driving production growth JSE project delivery on time and on budget Install new production manifold and water injection manifold JSE JSE JSE JSE JSE JSE Jubilee 2021-23 production (gross, kbopd)
Slide 15: Managing TEN decline whilst preparing new plan of development
Managing TEN decline whilst preparing new plan of development Focus on strong operational uptime and gas handling improvements in 2023 Material upside potential New Interim gas sales agreement GSA Long term gas sales agreement (GSA) Infill drilling, particularly on Ntomme TEN Gas processing improvem
Slide 16: A capital efficient portfolio of assets in Gabon and Côte d'Ivoire
A capital efficient portfolio of assets in Gabon and Côte d’Ivoire Focus on infill drilling, near-field developments and infrastructure-led exploration (ILX) 2020-23 Gabon and CdI production Capital efficient projects, IRRs typically >60% (net, kboepd) and quick payback Historic decline of c.5% p.a.
Slide 17: Strategy
STRATEGY Tullow Oil plc | 2022 Full Year Results
Slide 18: Material near-term catalysts to unlock potential value
Material near-term catalysts to unlock potential value Realise value from material discovered resource Field Development Plan submitted to Government for approval Kenya Deliver long-term gas sales agreement in Ghana Gas ILX strategy to maximise value around producing licences Exploration Unlock valu
Slide 19: A compelling value proposition
A compelling value proposition Further material upside potential Significant equity from clearly accretion on core identified catalysts Material step up in business plan as free cash flow debt is repaid Strong 2022 delivery in the Projects to financials and second half of 2023 unlock value transform
Slide 20: Q&A
Q&A Tullow Oil plc | 2022 Full Year Results
Slide 21: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Email: ir@tullowoil.com Web: www.tullowoil.com Follow Tullow on: